BHP shares are taking a beating on South32 listing

Worsley Alumina. Image: BHP Billiton.

BHP shares dropped 7% as its South32 spinoff hit the market.

South32 opened at $2.13 and quickly was trading at $2.20. At the same time BHP lost more than 7% to $30.11.

Together, the two prices almost equal, but not quite, Friday’s BHP closing price of $32.49.

The South32 price, and market capitalisation of about $11.3 billion, is at the lower end of analyst expectations.

South32’s asset portfolio includes, across five countries, alumina, aluminium, coal, nickel, manganese, silver, lead and zinc.

This leaves BHP to concentrate on iron ore, petroleum, copper and coal.

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